Colibri Real Estate (Real Estate Express) Final Exam
Review (2024 75-Hour Georgia Salesperson Prelicense
Course) Questions With Complete Solutions
A 1.75 acre lot sells for 40 cents per square foot. What is the
selling price?
A. $17,424
B. $21,780
C. $30,492
D. $76,230 Correct Answers C. $30,492
1 acre= 43,560 sq ft.
1.75 acre= 76,230 sq ft
76,230 x 0.40= 30,492
A and B sign a purchase agreement. Prior to closing, it is
discovered that A was legally incompetent when she signed the
contract. What is the status of the contract?
A. executory
B. valid, unless there was fraud
C. void
D. voidable by A only Correct Answers C. void
A borrower takes out a home equity loan for $50,000. This is a
fixed rate loan with an interest rate of 12%. The borrower makes
monthly payments of $514.31. What is the balance of the loan
after TWO monthly payments?
A. $49,985.69
,B. $49,971.24
C. $49,956.64
D. $49,941.90 Correct Answers B. $49,971.24
$50,000 x 0.12 = $6,000 annual interest. $6,000 ÷ 12 months =
$500 interest for month one. $514.31 payment - $500 interest =
$14.31 in principal. $50,000 - $14.31 = $49,985.69 balance after
first payment. $49,985.69 x 0.12 = $5,998.32 annual interest.
$5,998.28 ÷ 12 months = $499.86 interest for month two.
$514.31 payment - $499.86 interest = $14.45 in principal.
$49,985.69 - $14.45 = $49,971.24 balance after second
payment.
A borrower's stable monthly income is $4,200. She has three
monthly debts: $350 car payment, $120 student loan payment,
and $80 credit card payment. What is the maximum monthly
mortgage payment she would qualify for on a conventional
loan?
A. $962
B. $1,042
C. $1,176
D. $1,512 Correct Answers A. $962
The front-end ratio for a conventional loan is 28%. The back-
end ratio is 36%. Looking at the back end, or debt-to-income
ratio: $4,200 (income) x 0.36, equals $1,512. She has total
monthly debts of $550 ($350 + $120 + $80) that must be
subtracted: $1,512 - $550 = $962. This is how much she has to
spend each month for principal, interest, taxes, and insurance on
a house
,A brokerage company represents the buyer in a cooperative
transaction. The brokerage companyis informed that the buyer's
earnest money deposit check has been returned for insufficient
funds. What is the brokerage company's responsibility?
A. ask the buyer if it is okay to disclose the problem
B. disclose the information to the listing brokerage immediately
C. give the buyer reasonable time to resolve the problem
D. maintain confidentiality of the client's information Correct
Answers B. disclose the information to the listing brokerage
immediately
A brokerage practices designated agency. A licensee brings in a
listing for a seller's house. The seller then asks that same
licensee to represent her in her search to find a new house,
signing a buyer agency agreement with the brokerage. This
makes the licensee a
A. designated buyer's agent only.
B. designated seller's agent only.
C. designated seller's agent and designated buyer's agent.
D. dual agent. Correct Answers C. designated seller's agent and
designated buyer's agent.
A buyer offers a seller $189,500 for his house. The seller
accepts. The appraisal comes in at $188,000. If the buyer's
lender requires a loan-to-value ratio of 80%, how much of a
down payment must she make?
A) $37,600
, B) $37,900
C) $39,100
D) $39,500 Correct Answers C) $39,100
The lender will use the lesser of the sales price or the appraisal
to consider how much it is willing to lend. In this case, the
appraisal is lower. With a loan-to-value of 80%, the lender will
loan $150,400 ($188,000 x 0.80). That means she must make a
down payment of $39,100 to purchase this house: $189,500
(sales price) - $150,400 (loan amount) = $39,100 (down
payment).
A buyer's agent submits a signed offer to purchase to a listing
agent, indicating a price of $200,000 and a closing within 30
days. The seller accepts the price, changes the closing to 60
days, initials the change, and signs the offer. The listing agent
gives it to the buyer's agent, who delivers it to the buyer. Is this
a valid contract?
A. Yes; it is in writing and signed by both parties
B. Yes; the seller initialed his changes.
C. Yes; they agreed on the price.
D. No; there was no meeting of the minds. Correct Answers D.
No; there was no meeting of the minds.
A deed contains the following property description: "Beginning
at the northeast corner of Oak and Elm streets, thence 15 degrees
East to the embedded steel pin, thence North 90 degrees ..."
What type of legal description system is this?
A. government survey
